Wednesday, 3 August 2016

British Buyers Encouraged by Falling Asking Prices Despite Brexit

British Buyers Encouraged by Falling Asking Prices Despite Brexit

Regardless of Brexit Spain is a great place to buy property
Real estate agents are reporting that there is still strong interest in Spanish property from British buyers despite Britain choosing to leave the European Union. Most of the interest is people considering moving to Spain or buying a holiday home in the Costa del Sol or other areas.

The data from the latest index suggests that Spanish sellers need to be realistic in their estimations about how much property outside the popular areas is likely to cost. The latest data from Idealista about the asking price index shows that asking prices fell 3.1% nationally in June each year.

On a month by month basis asking prices have fallen 1.4% to their lowest level since the economy went south even though they rose briefly at the start of the year.

There are still some significant regional differences though. While the average index continues to fall nationally the asking price is recovering in some areas. Idealista were keen to point out that pries in some of the big cities and areas on the coast have actually risen after bottoming out. The biggest gains are the 19.5% of Barcelona, the 6.4% of Madrid and the 6.1% of Valencia.

It seems the Spanish market effectively have a two speed recovery according to the head of research at Idealista Fernando Encinar. He explained that even though prices were falling inland they were rising in the popular coastal regions like Madrid and Barcelona.

The biggest rises were seen in the second quarter of the year with 1.5% increases in Malaga, an increase of 0.8% in Costa Blanca, Tenerife, and the Canary Islands.

Real Estate agents are under the belief that this could mean more foreign buyers could enter the market and it looks like British interest has gone up following the Brexit vote. Some Brits feel disillusioned with the results of the referendum and are considering moving to Spain, especially the key cities of the country Madrid, Barcelona, and Valencia, and Malaga where there is a recovering economy and decent job market.

A report released last week claimed that the number of British citizens considering a move abroad had risen by 30% with Spain being the third most-popular choice after Australia and Canada. The London School of Economics released a study that suggested around 10% of the 18-25 year olds who voted to stay in the EU are considering moving abroad.